Representatives of the supermarket chain Sainsburу’s negotiate with the American company Walmart on the potential merger of Sainsburу’s and Asda. The details of the transaction evaluated at £10 billion were discussed. In the end, Asda was estimated at £7 billion, and as a result of the merger of brands, the network's revenue should be about £50 billion. The merger of two large supermarkets will allow to shift the British favorite Tesco from the pedestal.
The union will create a strong rival and reduce its popularity. At the moment it is not known how exactly this deal will be implemented, but, most likely, the shops of Asda will belong to Sainsburу’s. According to sources, the joint group of Sainsburу’s and Asda will be called Sainsburу’s. Experts also suggested that companies may have problems with Competition and Markets Authoritу, because they may not give approval for the transaction. The reason is the threat of a lack of healthy competition among retailers.
The results of the negotiations will be known in the coming days. It should be noted that the consumer survey in February showed that the British are delighted with the new brands such as Lidl and Aldi, which impress buyers with quality and acceptable cost of the products. Also the survey showed that Aldi moved Waitrose from the place of the favorite supermarket of British buyers. In turn, Sainsbury’s was the last in the list of the "big four" after Tesco, Asda and Morrisons. But it seems that soon the situation will change.